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Allis-Chalmers Energy To Pay $1.9M To End FLSA OT Suit

Posted: June 21, 2012
By: Eric Hornbeck
Source: Law360
Outcome: Settlement
Practice Areas: Employment Law

Allis-Chalmers Energy Inc. and its subsidiaries agreed Wednesday to pay $1.9 million to settle two class actions alleging the oil and gas servicing company only paid its field operators regular daily wages even though they often worked overtime.

The $1.9 million settlement will end a pair of state and federal class actions filed in Pennsylvania in 2011 and 2010, respectively, alleging that Allis-Chalmers, which didn't admit its liability, skimped on overtime pay, according to the agreement.

Much of the class is made up of operators whose duties mostly consisted of manual labor in transporting, installing and maintaining oil and gas drilling equipment, including fluid lines and air compressors. They were paid a daily rate and were classified as nonexempt from overtime compensation under the Fair Labor Standards Act, the agreement said.

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Sarah R. Schalman-Bergen of Berger & Montague PC, who represents the plaintiffs, said that the lawsuit "has been amicably resolved to the Parties' mutual satisfaction." Attorneys for the defendants didn't immediately respond to requests for comment Thursday.

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